Dynamic Scoring: Changing the Way Congress Estimates Cost (H.R. 1874)

What is H.R. 1874?

(Updated July 13, 2017)

Requires the Congressional Budget Office (CBO) to perform what is known as "dynamic scoring": an attempt to estimate whether, and by how much, a change in tax or spending policy would affect the overall economy. Such an analysis would describe the likely impact of major bills as they relate to key economic variables like investment, employment and GDP by looking at both short-term and long-term economic impacts of such bills. 

Argument in favor

Provides Congress with a clearer understanding of fiscal impact of legislation.

Argument opposed

Offers unnecessary changes to and impairs credibility of the budget process.

Impact

Impacts how legislators would view budget issues, especially tax policy issues.

Cost of H.R. 1874

CBO estimates that implementing H.R. 1874 would cost about $2 million over the 2014-2018 period.

Additional Info

Media: 

Americans For Prosperity: Letter of Support for Pro-Growth Budgeting Act

CBPP: Budget Plans Should Not Rely on Dynamic Scoring

Of Note:

-The bill excludes “spending on investments” because bills reported by the Appropriations Committee “contain investments that foster economic growth.”